Guideline on Accounts Prescribed of Type I telecommunications Operators
(June 21, 2007)
(Unofficial Translation)
Article 1
The guideline is enacted under Article 10 of Accounting Standards and Regulations for Type I Telecommunications Enterprises.
Article 2
The Guideline shall provide operators with the framework of establishing the structure of account and account code. The guideline shall also become the NCC's basis of inspection of the periodical reports offered by the operators.
Article 3
The Chart of Accounts of the Type I Telecommunications business of an operator shall include the account codes, account title, accounting definition and accounting methods, as per the attachment. The above-mentioned Chart of Accounts shall be the basic and minimal requirement in which operators must follow. Operators may include additional information depending on their needs.
Article 4
The structure of Accounting code contains 8 digits. The first 4 digits of which are required under the regulations of The Comparison List of Accounting Title and Number for General Business published by Securities and Futures Commission Ministry of Finance; the remaining 4 digits are designed in accordance with the telecommunications separate accounting requirements.
Article 5
The numbering scheme of the first 4 digits of the account code is as follows:
(1)The first digit represents the major category base in the financial statement as follows:
- Assets
- Liabilities
- Shareholders' Equity
- Income
- Operating Cost
- Operating Expense
- Non-operating Income and Expense
- Income Tax
- Net Income and Unusual Gains and Losses
(2)The second digit represents the middle category, which is placed under the major category, further categorize the different assets into and its placement inside the major category depends on its characteristics. (For example, Assets, are further categorize, base on the liquidity of the assets, into groups such as Quick Assets, Foundations and Long-term Investments, Fixed Assets, Intangible Assets and Other Assets.)
(3)The third digit represents the small category, which is placed under the middle category, further categorize the different assets into and its placement inside the major category depends on its characteristics. (For example, Quick Assets can be further divided into Cash and Cash Equivalents, Short-term Investments, Notes Receivable, Account Receivables, Inventories and Prepaid Expenses.)
(4)The fourth digit represents the general ledger classification. (For example, 1101 refers to Reserve Cash, 1531 refers to Machinery Equipment.)
Article 6
The numbering scheme of the last 4 digits of the asset accounts is as follows:
(1)The first digit represents 2 asset sub-categories: 1.Fixed assets of Telecommunications equipment, 2. Fixed assets of Non-telecommunications equipment.
(2)The second digit represent by types of telecommunications operating services, such as follows:
0 General Ledger (including the business 1~Z as follows)
1 Local Network Business
2 Long Distance Network Business
3 International Network Business
4 Digital Low Tier Cordless Telephone Business (900 MHz)
5 Digital Low Tier Cordless Telephone Business (1900 MHz)
6 Mobile Telephone Business
7 Radio Paging Service
8 Trunked Radio Service
9 Mobile Data Service
A Leased-Circuit Business (Local/Domestic Long Distance Leased Line)
B Leased-Circuit Business (International Submarine Cable)
C Fixed Satellite System Business
D Satellite Mobile Service
E Satellite Programs Relay Leased Service
Y Type II Telecommunications Service
Z Other Non-telecommunications Service
(3)The third code represents the specific sub-category of the second code, and the fourth one represents the detailed classification of the third code.
Article 7
The numbering scheme of the last 4 digits of the revenue accounts is as follows:
(1)The first digit is allocated by types of telecommunications operating services such as follows:
0 General Ledger (including the business 1~Z as follows)
1 Local Network Business
2 Long Distance Network Business
3 International Network Business
4 Digital Low Tier Cordless Telephone Business (900 MHz)
5 Digital Low Tier Cordless Telephone Business (1900 MHz)
6 Mobile Telephone Business
7 Radio Paging Service
8 Trunked Radio Service
9 Mobile Data Service
A Leased-Circuit Business (Local/Domestic Long Distance Leased Line)
B Leased-Circuit Business (International Submarine Cable)
C Fixed Satellite System Business
D Satellite Mobile Service
E Satellite Programs Relay Leased Service
Y Type II Telecommunications Service
Z Other Non-telecommunications Service
(2)The second digit represent further categorization of each income item into the following:
0 General Ledger (including the business 1~W as follows)
1 Installation Revenue
2 Monthly Rental Revenue
3 Communication Revenue
4 Leased Circuit Revenue
5 Network Interconnection Revenue
6 Public Telephone Revenue
7 Universal Telecommunications Services Revenue
W Other Revenues
(3)The third digit represents the further classification of the second digit, and the fourth one represents the detailed classification of the third digit.
Article 8
The numbering scheme of the last 4 digits of the operation cost accounts is as follows:
(1)The first digit represents 2 asset sub-categories: 1. Network Related Cost, 2. Non-network Related Equipment Cost.
(2)Network Related Costs shall include all costs aggregated by telecommunications equipments as cost pool. The number of last 4 digits shall be the same as the telecommunications equipment per Article 6.
The second digit of Non-network Related Costs represents the further classification as follows:
0 General Ledger (including the business 1~W as follows)
1 Network Interconnection Fee
2 Universal Telecommunications Services Fee
3 Concession Fee
4 Frequency Usage Fee
W Other Costs
(3)The third digit represents the further classification of the revenue, and the numbering principle is the same as the first digit of income account.
Article 9
The numbering scheme of the last 4 digits of the operating expenses accounts is as follows:
(1)The first digit represents 2 asset sub-categories: 1. Supporting Functions Costs, and 2. General Administration Costs.
(2)The second digit of Supporting Functions Costs is represents the further classification as follows:
0 General Ledger (including the business 1~W as follows)
1 Billing and Collection Expenses
2 Customer service Expenses
3 Marketing Expenses
4 Sales Commission Expenses
5 Installation Expenses
6 Product Development Expenses
7 Materials Management Expenses
W Other Supporting Expenses
(3)The second digit of General Administrative Management Costs is represent categorized classified as follows:
0 General Ledger (including the business 1~W as follows)
1 Executive and Planning Expenses
2 Procurement Expenses
3 Finance and Accounting Expenses
4 Information Technology Expenses
5 Research and Development Expenses
6 Regulatory Affairs Expenses
W Other Management Expenses
(4)The third digit represents the further classification of the revenue, and the numbering principle is the same as the first digit of income account.
(5)The fourth digit represents the detailed classification of the third digit.
Article 10
The numbering scheme of the last 4 digits of the non-operating income/expenses and the income tax accounts is as follows:
(1)The first digit is allocated by types of telecommunications operating services such as follows:
0 General Ledger (including the business 1~Z as follows)
1 Local Network Business
2 Long Distance Network Business
3 International Network Business
4 Digital Low Tier Cordless Telephone Business (900 MHz)
5 Digital Low Tier Cordless Telephone Business (1900 MHz)
6 Mobile Telephone Business
7 Radio Paging Service
8 Trunked Radio Service
9 Mobile Data Service
A Leased-Circuit Business (Local/Domestic Long Distance Leased Line)
B Leased-Circuit Business (International Submarine Cable)
C Fixed Satellite System Business
D Satellite Mobile Service
E Satellite Programs Relay Leased Service
Y Type II Telecommunications Service
Z Other Non-telecommunications Service
(2)The second digit represents the further classification of the first digit, the third digit represents the further classification of the second digit, and the fourth one represents the detailed classification of the third digit.
Article 11
The accounting methods relating to telecommunications equipment are as follows:
The Dominant Carrier shall clearly classify and record its telecommunications equipments into the categories define by the fourth digit of account code in the Appendix. The Non-Dominant Carrier shall at least clearly classify and record its Telecommunications equipment into the categories defined by the third digit of account code in the Appendix.
The transactions, such as Acquisition and Disposition of telecommunications equipment shall be recorded immediately after the transaction has been completed.
Article 12
Transactions related to the non-telecommunications equipment which can be directly identified to specific telecommunications services, shall directly be recorded in the account of the telecommunications services when they occurs. Other transactions that cannot be attributable to specific telecommunications services shall be recorded in separate subsidiary created account.
Article 13
The revenue can be directly identified to specific telecommunications services shall directly be recorded in the account of telecommunications. Other revenues which cannot be attributable to specific telecommunications services shall be recorded in another a separate subsidiary account.
Article 14
The data processing of operating costs shall be as follows:
When transactions which can be directly identified to specific telecommunications services occurs by the Dominant Carrier, the transaction shall directly be recorded in the respective account of telecommunications services. Those transactions that cannot be directly identified to specific telecommunications services shall be recorded in a separately created account, and the costs of which shall be allocated to network components and separate telecommunications services using the methods of costs separation in the end of the accounting period.
The data processing of operating costs of Non-Dominant Carrier may be based on the general financial accounting standards. The costs may be allocated to network components and separate telecommunications services using the method of costs separation in the end of the accounting period.
Article 15
The data processing of operating expenses shall be as follows:
When transactions that can directly identified to specific telecommunications services occur by the Dominant Carrier, the transaction shall directly be recorded in the respective account of telecommunications services. Those transactions that cannot be directly identified to specific telecommunications services shall be recorded in another separately created account and the cost of which shall be allocated to network components and separate telecommunications services using the method of cost separation in the end of the accounting period.
When the expense mentioned above that shall be attributable by various cost driver, the expenses shall be recorded separate subsidiary account.
The data processing of operating of Non-Dominant Carrier may be based on the general financial accounting standards. The cost of transactions may be allocated to network components and separate telecommunications services using the method of cost separation in the end of the accounting period.
Article 16
The data processing of non-operation income shall be as follows:
When transaction that can be directly identified to specific telecommunications services takes place, the Dominant Carrier in the Telecommunications Market shall directly record the transaction to that account of telecommunications services. Transactions that cannot be directly identified to specific telecommunications services shall be first recorded in subsidiary account. The cost of various telecommunications services in connection with the transaction should then be determined in accordance with the Cost Separation Method at the end of the accounting period allocated to network components and separate telecommunications services according to the method of cost separation in the end of the session.
The accounting procedure of Non-Dominant Carrier may be based on the general financial accounting standards, and allocate the cost of various telecommunications services in accordance with the Cost Separation Method at the end of the accounting period.
Article 17
Depending on its organization structure and operations an operator may set up additional accounting categories consistent with the requirement of this Guideline.
Article 18
When the scope of Type I Telecommunications services stipulated by the Telecommunications Act changes, an operator may set up additional accounting categories following the principles of this Guideline.
Article 19
The Guideline shall come into effect upon the date of promulgation.
